India’s telecom subscribers are finally going to see the light of the much hyped and discussed 3G services and number portability. The government unveiled its plan to take India’s mobile revolution to the next technological level by opening 3G spectrum auctions to global players that would allow better multimedia services and also quick data and video transfer. Government also announced the first step towards number portability, a major consumer-friendly move that will let the users to switch their mobile operators without losing their numbers.
The 3G spectrum will be initiated in the next 15 days under the supervision of an independent agency to ensure full transparency, there would also be strict roll-out obligations to avoid spectrum hoarding. The Auction is expected to garner around Rs 30,000 cr (around $7 bn) to the government exchequer, a huge respite for the government during the current phase of rising global oil prices, huge subsidy payouts, double-digit inflation and slowing growth.
Currently the country has 60 Mhz of 3G spectrum available, the auction will take place in the 2.1 Ghz band, with 3G services likely to be available by the mid-2009. Initially, only two to five operators would be allowed to offer 3G services in each circle. However in the Delhi and Mumbai circles, only one operator would initially be allowed to offer 3G services, apart from State-owned MTNL due to spectrum crunch. Similarly, for the rest of the country the other government telecom giant, BSNL would get 3G spectrum. The base price for a pan-India license will be Rs. 2,020 cr for each bid, while UASL fee would be Rs. 1,650 cr.
The government also took concrete steps towards introduction of mobile number portability (MNP) by announcing guidelines for an MNP service licence. MNP would first start in the four metros in next two months and subsequently roll out in rest of the country over the next 6-12 months. According to the guidelines, the whole country will be divided into two MNP zones consisting of 11 service areas with two metros in each zone. The MNP service provider and the mobile operators would not be allowed to have equity (direct or indirect) stake in each other's operations. No single company/legal person/the MNP License applicant or MNP Licensee company either directly or indirectly will have any equity, in any of the telecom service provider (basic service, UAS, Cellular Mobile, NLD or ILD) and vice-versa.
The government would allocate the licenses for MNP soon and the eligible applicant should have an experience of operating successfully, number portability solution for a mobile subscriber base of not less than 25 mn in one or more countries for at least two years. The applicant company shall also be required to have a minimum paid up capital of Rs 10 cr on the date of application and a networth of Rs 100 cr. The applicant company or its share equity holders having direct equity of 26 per cent or more in the company should have the required experience. Also, the government has fixed one-time, non-refundable, entry fee of Rs 1 cr for the grant of MNP services license and the company shall have to pay annual license fee of one per cent of the Adjusted Gross Revenue. According to method of selection, the pre-qualified applicants/bidders shall be subjected to a "techno-economic Evaluation" for final selection. The MNP license shall be for a period of five years and can be extended by another five years by the Department of Telecom.
What is 3G?
3G represents the next step in the evolution of mobile telephony, offering markedly greater capacity and efficiency than the current 2G systems. While 2G is focused on voice, 3G supports high-speed data of at least 144 kbps enabling broadband internet access on the mobile, and ‘‘triple play’’ features like mobile TV and converged communication services.
What is MNP?
MNP allows subscribers the freedom to retain their mobile number while switching over to a different service provider. The system when implemented will allow consumers more choice, lower prices and significantly better quality of service.
The 3G spectrum will be initiated in the next 15 days under the supervision of an independent agency to ensure full transparency, there would also be strict roll-out obligations to avoid spectrum hoarding. The Auction is expected to garner around Rs 30,000 cr (around $7 bn) to the government exchequer, a huge respite for the government during the current phase of rising global oil prices, huge subsidy payouts, double-digit inflation and slowing growth.
Currently the country has 60 Mhz of 3G spectrum available, the auction will take place in the 2.1 Ghz band, with 3G services likely to be available by the mid-2009. Initially, only two to five operators would be allowed to offer 3G services in each circle. However in the Delhi and Mumbai circles, only one operator would initially be allowed to offer 3G services, apart from State-owned MTNL due to spectrum crunch. Similarly, for the rest of the country the other government telecom giant, BSNL would get 3G spectrum. The base price for a pan-India license will be Rs. 2,020 cr for each bid, while UASL fee would be Rs. 1,650 cr.
The government also took concrete steps towards introduction of mobile number portability (MNP) by announcing guidelines for an MNP service licence. MNP would first start in the four metros in next two months and subsequently roll out in rest of the country over the next 6-12 months. According to the guidelines, the whole country will be divided into two MNP zones consisting of 11 service areas with two metros in each zone. The MNP service provider and the mobile operators would not be allowed to have equity (direct or indirect) stake in each other's operations. No single company/legal person/the MNP License applicant or MNP Licensee company either directly or indirectly will have any equity, in any of the telecom service provider (basic service, UAS, Cellular Mobile, NLD or ILD) and vice-versa.
The government would allocate the licenses for MNP soon and the eligible applicant should have an experience of operating successfully, number portability solution for a mobile subscriber base of not less than 25 mn in one or more countries for at least two years. The applicant company shall also be required to have a minimum paid up capital of Rs 10 cr on the date of application and a networth of Rs 100 cr. The applicant company or its share equity holders having direct equity of 26 per cent or more in the company should have the required experience. Also, the government has fixed one-time, non-refundable, entry fee of Rs 1 cr for the grant of MNP services license and the company shall have to pay annual license fee of one per cent of the Adjusted Gross Revenue. According to method of selection, the pre-qualified applicants/bidders shall be subjected to a "techno-economic Evaluation" for final selection. The MNP license shall be for a period of five years and can be extended by another five years by the Department of Telecom.
What is 3G?
3G represents the next step in the evolution of mobile telephony, offering markedly greater capacity and efficiency than the current 2G systems. While 2G is focused on voice, 3G supports high-speed data of at least 144 kbps enabling broadband internet access on the mobile, and ‘‘triple play’’ features like mobile TV and converged communication services.
What is MNP?
MNP allows subscribers the freedom to retain their mobile number while switching over to a different service provider. The system when implemented will allow consumers more choice, lower prices and significantly better quality of service.
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